Next week's gold price: Laying the groundwork for a 2026 upswing

Gold prices increased significantly this week, going from $4,271/oz to $4,374/oz before declining and ending the week at $4,336/oz.

The price of SJC gold bars reported by DOJI in the Vietnamese gold market likewise rose from VND 156.3 million to VND 157.2 million before falling to VND 155.5 million.

In the first few sessions of this week, gold prices continued to rise due to the market's disdain for the Fed's prediction of only one interest rate decrease in 2026.

The U.S. CPI for November 2025 climbed by 2.7% year over year, less than the anticipated 3.1%, according to a delayed report provided by the U.S. Bureau of Labor Statistics on Thursday. Concurrently, the core CPI, which does not include the volatile costs of food and energy, increased by just 2.6%, which is less than anticipated. However, experts caution that because of the extended US government shutdown, these numbers could be distorted. This lessened the allure of gold and helped the US dollar rise for the third day in a row.

However, market estimates that the Fed would continue to lower interest rates twice in 2026 were not diminished by the CPI. Additionally, US President Donald Trump declared that a strong proponent of a rate drop will be the next Fed Chair. Next week, gold prices could continue to be supported by this.

But a lot of investors were away for the holidays of Christmas and New Year's in 2026. As a result, next week's gold trade volume will be much lower, making it more difficult for gold prices to vary dramatically. Alternatively, they may move sideways, laying the groundwork for an upward trend in the first part of 2026.

The Fed's ongoing interest rate cut, the ongoing trade war, and the fact that many central banks are still purchasing gold are the key causes of the increase in gold prices in 2026. The bulk of the demand still comes from central banks in emerging markets, many of which still keep less than 15% of their reserves in gold as opposed to more than 30% in industrialized nations. As a result, these central banks have plenty of room to keep buying gold. These central banks purchase gold in order to diversify away from the US currency, reduce the danger of sanctions, and guarantee the long-term security of their foreign exchange holdings.

Gold prices will grow in 2026, but not as quickly as they did in 2025, according to Christopher Louney, a gold market analyst at RBC Capital Markets.

According to Mr. Louney, he believes that investment demand will fundamentally change in 2026, giving gold prices a stronger upward trajectory. He pointed out that asset allocation ratios had risen dramatically. Gold currently makes up 5–10% of worldwide investment portfolios, up from just 2–5% earlier. This illustrates how gold has evolved from a tool for risk hedging to a primary portfolio diversifier.

A key takeaway from 2025 that applies to 2026 is that, despite the fact that uncertainty can take many different forms, investors continue to feel underinvested in gold due to the ongoing uncertainties around tariffs, geopolitics, etc. "Combined with gold's strong price performance and lower correlation, we think gold is now more accepted as a strategic part of a portfolio," said Louney.

Mr. Louney predicts that the price of gold might peak between $4,500 and $5,000 per ounce in 2026, with the second half of that year seeing the greatest prices.